Benefit and Sustainability Annual Report2017

Floyd|Snider · Two Union Square · 601 Union Street Suite 600 · Seattle, Washington 98101 · tel: 206.292.2078

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2017 Annual Report

“The B Corp movement is one of themost important of our lifetime, builton the simple fact that businessimpacts and serves more than justshareholders—it has an equal respon-sibility to the community and to theplanet.”

Rose MarcarioB Corp Member & CEO of Patagonia

WHO WE ARE AND OUR MISSION

Our mission has always included the values that areparamount to the B CorpTM philosophy. We arededicated to supporting a good quality of life for ouremployees, offering benefits and shares in companyownership for all employees, comfortable andergonomic office spaces, and opportunities forprofessional and personal growth. These policies,which were in practice long before we became aCertified B Corp, set us apart from many otherSeattle firms in our sector. In 2017, the Shareholdersagreed unanimously to change our corporatestructure to a Social Purpose Corporation and applyfor B Corp certification.

At Floyd|Snider, we believe in building relationships with our clients, teamingpartners, and regulators that are based on technical proficiency, resourcefulproblem-solving, engineering and design expertise, and strategic implementation.We proudly serve clients in all sectors of our communities: ports, municipalities,industries, developers, contractors, and government agencies. In 2017,Floyd|Snider became the first Certified B Corporation® environmentalconsulting firm in the United States. As a Certified B Corp, we assist clients indefining and achieving project goals for contaminated upland and aquaticproperties, and we do our work and manage our business in a way that providesbenefit to our communities and environment, as well as to our shareholders.

The purpose of this Benefit and Sustainability Annual Report is to guide, communicate, and document ourcommitment to being a socially and environmentally responsible company. We have organized the AnnualReport around who we are as a Certified B Corp, our firm sustainability practices, and our commitment tocommunity environmental stewardship.

Since Floyd|Snider’s founding in 1996, our company mission has been “to provide comprehensiveconsultation services to assist our clients in both defining and achieving long-term objectives forcontaminated properties.” We assemble and manage strong project teams by utilizing our large network oflocal, regional, and national experts, and our knowledge of experienced and cost-effective local firms. Oneof our foundational goals is to provide on-going evaluation, guidance, facilitation, and management ofcomplex projects, so that projects finish with the same pride and enthusiasm with which they began.

Our company employs an accomplished staff of environmental scientists, engineers, geologists, ecologists,chemists, statisticians, planners, facilitators, project managers, and assistants who work in a creative andcollaborative environment. We are dedicated to quality in our work and to building rich, enduring,productive relationships in order to accomplish goals beyond each of our individual capabilities.Floyd|Snider is based in Seattle, Washington, and is state certified as a Women-Owned Business Enterprise.

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OUR COMMITMENT TO BE A SOCIALLY RESPONSIBLE COMPANY

Floyd|Snider has chosen to become a Social Purpose Corporation (SPC) in the state of Washington and aCertified B Corp. This demonstrates our commitment to perform our consulting services and manage ourbusiness in a manner that provides benefit to our employees, our communities, and the environment, inaddition to providing financial benefit to our shareholders.

B CORP ASSESSMENT AND MEASURES OF SUCCESS

company to be eligible for B Lab® certification.Floyd|Snider completed its Impact Assessment inthe spring of 2017, and received a score of 121.The median overall score for companies whocompleted the Impact Assessment in 2016 was 55.We take pride in our Impact Assessment Score,and will use the certification and the ImpactAssessment as tools annually to help us continueto become a more sustainable company.

The four Impact Assessment categories are:Environment, Governance, Workers, Employees,and Community Involvement. In the followingsections of our Benefit and Sustainability AnnualReport, we provide an overview of our assessmentresults in each of these four categories and alsohighlight our sustainability practices and ourcommitments to minimizing waste and maximizingreuse and recycling. We also describe ourcommitment to community environmentalstewardship, including volunteering andengagement with non-profits.

What makes us a better company?

B Impact Report

Certified since: June 2017

Summary:

Environment

Workers

Community

Governance

Overall B Score

80 out of 200 is eligible for certification*Of all businesses that have completed the B Impact Assessment*Median scores will not add up to overall

Floyd|SniderScore

MedianScore*

39

38

24

19

121

7

18

17

6

55

In order to become a Certified B Corp in the state of Washington, an SPC company takes a B ImpactAssessment, which assesses the overall impact of a company on its stakeholders. A company’s ImpactAssessment Score is measured on a 200-point scale, with a minimum score of 80 required in order for a

Certified B Corps (the B stands for “benefit”) are for-profit companiescertified by B Lab®, a global nonprofit, to meet rigorous standards ofsocial and environmental performance, accountability, andtransparency. Floyd|Snider has always made business decisionsbased on how our actions will affect our employees, theenvironment, and the community. Becoming both an SPC andCertified B Corp solidifies our commitment to be a sociallyresponsible company. Learn more about B CorpTM and B Lab® here.Per B Lab®, as of 2017 there is a growing community of more than2,000 Certified B Corps from over 50 countries working togethertoward one unifying goal: to redefine success in business!

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2017 Annual Report

A company’s positive environmental impact is measured by the extent to which its products, services,suppliers, and decisions promote positive environmental outcomes. Not only does this category and theresulting score recognize businesses whose services promote awareness about environmental issues andfacilitates conservation, it is also about internally encouraging good environmental stewardship andreducing our business’s environmental footprint.

As an environmental consulting firm, Floyd|Snider puts environmental awareness and conservation intopractice daily. We also work to continually improve our environmental stewardship through thoughtfulpractices in our day-to-day operations. We are committed to supporting green building design, providingsmart office operations, buying green, encouraging responsible work commutes, advancing officetechnology, and nurturing a healthy work environment. Below we overview how we work to meet theseobjectives and continue our commitment to implementing these sustainable and environmental principles.

Floyd|Snider is committed to reducing toxic materials in landfills, with resourceful electronic waste recyclingand readily available receptacles for recycling, shredding, and composting in-our office building. SeattleMunicipal Code requires that no recyclable or compostable products be placed in the garbage. In addition toour utilities’ requirements, we choose to participate in a number of voluntary programs as well.

Recycling and Composting

Seattle commercial

compost collection

Aluminum, glass, paper,

and Styrofoam

Obsolete/defective computer

equipment

“E-Waste” office supply products and

machinery

Environment 44 pts totalF|S Score

Median

39 (88.6%)

7 (15.9%)

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2017 Annual Report

We encourage our employees to seek low carbon or carbon neutral transportation to and from the office viawalking, biking, carpooling, and using public transit. We have designed our office space to support biking towork by providing bike storage and a locker room.

Commuting and Transportation

Our team also works toward reducing our city’s carbon footprint by engaging in responsible commutingpractices to and from project sites and client meetings. We have implemented the following programs andincentives to encourage alternative commuting and to subsidize cost:

• $100 monthly commuting stipend for employees

• Free bicycle storage with access to showerfacilities

• Option of receiving pre-tax dollars towardcommuting expenses (Internal Revenue CodeSection 132(f) Qualified Transportation Fringe)

• Virtual meeting options via Skype, Zoom, or CiscoWebEx

• Reliable internet phone system and remotedesktop allowing employees to work remotelywhen needed and stay connected to ourFloyd|Snider community

BikeTelecommuteCarpool WalkTransitDrive Alone

6%

Downtown Commuters* Floyd|Snider

15%18%

9%

30%12%

39%

* Based on the 2016 Center City Commuter Mode Split Survey performed by Commute Seattle.

47% 7%

9%5%3%

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Floyd|Snider staff are extremely conscious of the impact they can have on waste reduction in the office. Wesignificantly lower office waste through a sophisticated electronic filing and archiving system, a file-sharingprogram that makes electronic submittals easy and secure, and paperless invoicing and client paymentswhen possible. We also work to lower our footprint through the use of 100% recycled printer paper for allroutine printing, and print double sided when applicable. In addition to these daily efforts, we use thefollowing systems to decrease our office’s impact on the environment.

• SirsiDynix’s EOS.Web library software and cloud storage for digital document archiving

• SMART Board and sophisticated screen projection equipment in conference rooms for meetings andpresentations, reducing the need for printed handouts

• Konica Minolta Bizhub C6543e printers supplied with Simitri HD toner with biomass to reduce carbondioxide emissions and conserve energy

• PUR faucet filtration systems installed on all faucets to promote better water quality and avoid theneed to provide bottled water

• LED lighting and HVAC system, both run on automatic timers to conserve energy

Office Operations

Business Practices

Our office is located in Two Union Square, an energy-efficient, award winning (Energy Star award and BOMA Building of the Year 1999/2000), and LEED Platinum Certified retail and business space. Two Union Square offers many green and sustainable amenities to its tenants, including their E-Waste program, in which batteries, cell phones, toner cartridges, and many other office supply products and machinery can be recycled through Friendly Earth International.

We strive to use vendors who employ green and sustainable practices. For our work in the field, we givepreference to vendors invested in dependent and durable products tied to environmentally friendlymanufacturing processes and company pledges to dematerialization.We also promote environmental sustainability and efficiencyin all aspects of fieldwork. Floyd|Snider also provides our clients with Green and Sustainable Remediation Services, where we reduce the impact of remedial actions on the environment through strategic remedial investigation, remedy development, and design and implementation for cost-effective, long-lasting, and low-impact alternatives that enhance the selected remedial action and future use of a site.

AWARENESSof greenhouse gas emissions during

work and commuting

EFFICIENCYduring mobilization,

sampling, and material preparation

REDUCTIONof waste by using dedicated field

equipment

RECYCLINGto reduce waste

and conserve resources

MINIMIZATIONof waste through better sampling

techniques

REUSEof clean materials

to minimize landfill impact

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A company’s positive impact on employees is measured by the extent to which it maintains a compensationand benefit structure beneficial to its employees, maintains an equitable salary scale, allows employees tohave meaningful ownership stake in the company, and fosters a positive work environment.

We are 100% employee owned, and a portion of that ownership is through an Employee Stock OwnershipPlan (ESOP). The company contributes a percentage of each employee’s salary annually, which results in thepurchase of company stock. Every employee is eligible to participate and vesting is immediate. Statementsare produced annually, and the company financials are shared with employees so everyone can monitor andunderstand their investment.

Company Ownership

In addition to our focus on the environment, we also provide for our employees and their families.Floyd|Snider has adopted policies to ensure employees are treated fairly and given the opportunity tostructure their schedules in a manner conducive to meeting their professional and personal responsibilities.We offer advanced technology in-house, provide ergonomic workstations that adjust for each individual, andcontinue to nurture a healthy work environment. Our staff are provided ample vacation and sick time, FMLAfamily leave time, compensatory time, an extra week of paid time off specifically for volunteeringopportunities, and top tier medical benefits. In addition to these basic perks, we also provide opportunitiesfor employees to find the right work/life balance. These may include:

Fostering Office Community and Supporting Employee Health

• Individual offices to increase productivity atwork

• Flexible work hours for staff around corehours

• A culture of sharing workload to reduce theneed for overtime and weekend work

• Family-friendly events outside of businesshours

• Healthy snack and drink alternatives, suchas weekly fresh fruit deliveries

Optional health initiatives such as supplementalinsurance policies, orientations with nutritionistsand wellness coaches, free group exerciseopportunities, and access to the Two Union Squaregym are also available.

Workers 50 pts totalF|S Score

Median

38 (76%)

18 (36%)

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A company’s positive governance impact is measured by the extent to which the company is accountable tostakeholders, and the extent to which its decision-making is transparent to stakeholders. Floyd|Snidermaintains transparency with our shareholders, employees, and clients. We work to preserve our mission andconsider all stakeholders, regardless of their level of company ownership. Beginning in 2011, in anticipationof eventual Principal retirement, Floyd|Snider implemented an Ownership Transition Plan. The plan isfocused on encouraging mid-level staff to become shareholders in the company and gradually take on keyleadership roles, while allowing senior staff to plan for retirement and transition their projects and clients ina responsible way. This is a long-term plan that has been very successful in smoothly expanding shareholderstatus from just a couple individuals to several employees within the company.

A company’s positive communityinvolvement is measured by the extentto which it creates jobs, provides fordiversity, civic engagement, and stronglocal supply chains. We are highlyengaged in our local community, both aspart of our industry with teamingpartners and subcontractors, and as partof the larger public sector. As a firm, weactively volunteer and support non-profit organizations, and we encourageour employees to do the same byproviding an extra week of paid leaveeach year to use in service to the non-profit of their choice.

Employees’ individual contributions tonon-profits and use of their company-provided volunteer time, as well asexamples of our engagement with thecommunity are described later in ourCommunity Environmental Stewardshipsection.

Community 51 pts totalF|S Score

Median

24 (47%)

17 (33%)

Governance 21.3 pts totalF|S Score

Median

19 (89.2%)

6 (28.2%)

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COMMUNITY ENVIRONMENTAL STEWARDSHIP

In a 2005 document entitled “Everyday Choices: Opportunities for Environmental Stewardship,” the USEPAdefined environmental stewardship as, “the responsibility for environmental quality shared by all thosewhose actions affect the environment. This sense of responsibility is a value that can be reflected throughthe choices of individuals, companies, [and] communities.”

Floyd|Snider and its staff choose, through a variety of thoughtful business and personal practices, to remaincommitted to environmental stewardship and the value of environmental quality within our community.

Floyd|Snider provides employees with an extra week of paid leave each year to use in service to the non-profit of their choice. This service-based leave program has resulted in more than 1,400 hours of volunteerwork within our community. This number is just a portion of the total volunteer work performed by ouremployees, with even more hours dedicated on nights and weekends. Floyd|Snider received recognition andaward from the Association of Washington Business for this program in 2009. Since then, employees havedonated time to a variety of organizations, as shown in the following table, that have a similar commitmentof environmental stewardship and community engagement.

Annual Paid Time Off for Volunteerism within the Community

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Organization Mission Supporting Community Environmental Stewardship

Bike Works Community bike shop that promotes the bicycle as a vehicle for change toempower youth and build resilient communities.

Cedar River Watershed Education Center

Provides opportunities for thousands of visitors to learn about the complex issuessurrounding the region's drinking water, forests, and wildlife.

Columbia Land Trust Mission to conserve and care for the vital lands, waters, and wildlife of theColumbia River region through sound science and strong relationships.

Environmental Coalition of South Seattle

Delivers environmental education, resources, and technical assistance in the areasof stormwater permit compliance, recycling and food waste, energy efficiency,Brownfields, Green Stormwater Infrastructure, and outreach to multiculturalcommunities and businesses.

Evergreen Mountain Bike Alliance

Mountain bike association committed to creating, maintaining, and protectingsustainable mountain bike opportunities in Washington.

Futurewise Advocates for livable cities through fair housing, public transportation, socialjustice, environmental justice, and environmental quality.

IslandWood A local outdoor learning center, whose mission is to provide exceptional learningexperiences and to inspire lifelong environmental and community stewardship.

Magnolia Historical Society

Encourages a more complete and knowledgeable sense of place through theworks and projects of the Magnolia Historical Society, in Seattle, Washington.

Reef Conservation International

Mission to protect our oceans through science, action, and advocacy with ongoingconservation programs, education, and marine research.

Seattle Inspiring Connections Outdoors

Serves several hundred Seattle inner-city youth each year, providing them withopportunities to be physically active in nature with hiking, canoeing, sledding, andmore.

Seattle Tilth Inspires and educates people to safeguard our natural resources while building anequitable and sustainable local food system.

Sierra Club Advocates for clean air, water, and open spaces, and organizes wildernesseducation opportunities.

Washington State Trails

Mission to preserve, enhance, and promote hiking opportunities in WashingtonState through collaboration, education, advocacy, and volunteer trailmaintenance.

Whidbey InstituteA 100-acre woodland campus to gather and engage with our Earth and ourcommunities in response to social, political, and cultural systems that oppresspeople and the planet.

Select Organizations with which Floyd|Snider Employees Have Volunteered

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Floyd|Snider Principal Kate Snider has served on the Board of Directors at the Whidbey Institute since2012, and is currently Board President. The Whidbey Institute is a 501(c)(3) educational non-profitorganization and a home for transformational learning. Since 1972, people from around the world havegathered at the 100-acre woodland campus to practice new ways of relating with the Earth, one another,and their potential for action in response to interconnected social and environmental challenges. Instituteparticipants engage in courageous contemplation, share generative experiences, nurture resilientcommunities, and help steward a vital ecosystem.

In her time with the Institute, Kate has led multiplecommunity celebrations and fundraising events. Kate has alsoteamed with Floyd|Snider employee Rae Carleson to producemultiple community festival events. Kate is currently leading amajor capital campaign to expand lodging and meetingfacilities at the Institute, to enable greater financialsustainability, enhance accessibility, support youthprogramming, and facilitate greater numbers of people to beable to come together across differences to co-create a betterfuture. The new facilities will also showcase environmentallysustainable building technologies.

Kristin Anderson is a Licensed Geologist at Floyd|Snider, andthrough the service-based leave program and on her own time,she also an active volunteer at Bike Works. Bike Works is anorganization that provides youth and community classes,provides bike repair to underserved communities via a mobilebike shop, and advocates for bicycling and bike (and pedestrian)friendly city planning. This nonprofit bike shop deals only in usedbicycles and parts.

Kristin’s volunteer work is focused on the Recycle & Reuse program. Through this program, Bike Works accepts donated bikes and parts at their shop, and partners with the City of Seattle and Waste Management to place bike donation bins at transfer stations. Kristin works with the donations, when they need to be overhauled, or as they are set aside for the kids’ earn-a-bike program and other programs that get bikes into the hands of people in need.

The bikes that are not used stateside are passed along to a network of nonprofits in Ghana. The smallamount of material that cannot be used is recycled. In 2015, Bike Works estimated that the Recycle & Reuseprogram diverted more than 216,000 pounds of material from the waste stream.

Floyd|Snider staff volunteer regularly throughout the Pacific Northwest and beyond. Below are someexamples of how our staff have used their additional time off to support environmental stewardship.

Recent Floyd|Snider Spotlights on Community Environmental Stewardship

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Gabriel Cisneros, is a Licensed Geologist at Floyd|Snider and is an avid rock climber. Gabe volunteerswith Access Fund, a national organization, and its local climbing advocacy organization, the WashingtonClimber Coalition (WCC). The Access Fund and WCC’s mission is to protect climbing access, and to helpmaintain the integrity of climbers and their passion to protect the environment, build relationships withlandowners and park managers, and educate and inspire local climbing communities.

Gabe volunteers by working with land managers to care for climbing areas within state parks and privatelyowned land. He is currently working with the Larrabee State Park land managers to help organize a cleanupday that will consist of litter and graffiti cleanup in hard to reach places, along with climbing clinics for thepublic, and he is coordinating with the land managers about the potential to develop new trails to newclimbing areas within the park.

Amanda McKay traveled to Central America in 2012 to work with Reef Conservation International (ReefCI)on invasive species removal within the Belize Barrier Reef. As part of this volunteer work, Amandacompleted a number of diving expeditions to assist in the removal of the invasive Lionfish, which are knownto consume native species and vastly reduce the fish populationthat beneficially serves this delicate marine ecosystem. “Theinvasive lionfish is one of the greatest threats to the sustainabilityof the coral reefs and fisheries habitat throughout the Caribbean.”Amanda’s work was primarily focused on active spearfishing,as a means for removal of the lionfish, in coordination with anumber of other volunteers.

In addition to this volunteer work with Reefcl, Amanda assistedwith fish surveys as part the Reef Check Foundation. Reef Checkhas a similar mission of marine conservation, and monitors

health of reefs through implementation of a volunteer-basedprogram that utilizes a standardized scientific protocol toestablish and update the status of coral reefs.

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Floyd|Snider Provides Monetary Contributions to Organizations Committed to Environmental Stewardship

In addition to providing employees with paid time off to volunteer within the community, Floyd|Snider setsaside a portion of its profits to provide monetary contributions to several Seattle area organizationscommitted to environmental stewardship. Last year, Floyd|Snider made contributions to Citizens for aHealthy Bay, the Tacoma Historical Society, and NatureBridge, with two of these non-profits working oncleanup of our Puget Sound waterways, and another providing environmental education to our youth.Citizens for a Healthy Bay represents and engages citizens in the cleanup, restoration, and protection ofCommencement Bay, the surrounding waters, and our natural habitat. In the summer of 2016, Floyd|Sniderwas a sponsor for a Tacoma Historical Society dinner to celebrate the revitalization of Commencement Bay,and to mark the 10-year anniversary of the Thea Foss Waterway cleanup. NatureBridge fostersenvironmental literacy to sustain our planet through hands-on environmental science programs.

Other contributions over the past 10 years have been made to the Mountains to Sound Greenway Trust,Friends of the Hylebos, the Environmental Coalition of South Seattle (ECOSS), Climate Solutions, theNorthwest Environmental Business Council, and the Washington Environmental Council. These organizationshave varied missions, but share a similar focus of environmental stewardship within our community. TheMountains to Sound Greenway Trust is committed to conserving the 1.5 million-acre landscape weavingtogether built and natural environments. Friends of Hylebos works with the community to protect andrestore streams, wetlands, forests, and open space in the Hylebos watershed. ECOSS delivers environmentaleducation, resources, and technical assistance in the areas of stormwater permit compliance, recycling andfood waste, energy efficiency, Brownfields, green stormwater infrastructure, and outreach to multiculturalcommunities and businesses. The mission of Climate Solutions is to accelerate practical and profitablesolutions to global warming by through leadership, investment, and understanding. The NorthwestEnvironmental Business Council represents the Northwest’s leading service and technology providersworking to protect, restore, and sustain the natural and built environment. The Washington EnvironmentalCouncil is a statewide advocacy organization with a mission to protect, restore, and sustain Washington’senvironment for all.

Floyd|Snider Participates in Community Celebrations to Honor the Global Movement toward Environmental Stewardship

Floyd|Snider assembled a team to take part in the Snoqualmie Valley Half Marathonon June 10, 2017. Floyd|Snider and teaming partners from KPFF Special Projects ranthe race, with a portion of registration fees and all donations going to the Snoqualmie ValleyCommunity Network, an organization dedicated to promoting youth to lead safe, healthy,and successful lives. The firms also sponsored the running team by donating to theMountains to Sound Greenway Trust. The Greenway Trust leads and inspires action toconserve and enhance the landscape from Seattle across the Cascade Mountains to CentralWashington, ensuring a long-term balance between people and nature. Bipartisanlegislation was just introduced to designate the Mountains to Sound Greenway as a NationalHeritage Area, which would be the first designation in the Pacific Northwest.

Snoqualmie Valley Half Marathon and Mountains to Sound Greenway Sponsorship

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Floyd|Snider has often dedicated a portion of its annual company retreat to environmental stewardship,mobilizing all employees for a big impact. After a series of discussions around improving communityinvolvement and a locally sourced lunch at IslandWood, an environmental learning center on BainbridgeIsland, Floyd|Snider headed to the campus gardens for an afternoon of community environmentalstewardship. This included tasks such as pruning, hauling compost, transplanting seedlings, and weeding. Itwas an honor to help with some of the maintenance required for the 255-acre outdoor learning centerfocused on community involvement, sustainability, and education support for all ages. During a retreat heldat the Whidbey Institute, Floyd|Snider staff assisted the Institute’s caretakers in clearing debris in theunderstory and removing invasive species, both of which will aid in improving the health of the forest. TheInstitute includes over 100 acres of wildlife sanctuary with trails and gardens open to the public daily. Theyalso host programs that contribute to a sustainable and life affirming future, bringing people andorganizations together to engage with each other and with nature.

Floyd|Snider Practices Community Environmental Stewardship at Annual Company Retreats

Outside of the office, Floyd|Snider employees engage in work to help communities prepare for the impactsof climate change. Through collaboration with other consulting organizations and leading climate scienceresearch groups, Kim Rodgers provides technical GIS expertise in the evaluation of critical vulnerabilities andpotential risks from a changing climate. Kim’s meaningful work helps in the development of strategicadaptation plans and decision-making tools that incorporate relevant climate information. Some projectexamples include mapping locally specific sea level rise scenarios to assess the impacts on infrastructure,ecosystems, and water supply; identifying climate related vulnerabilities of key species, habitats, and othernatural resources of concern for a Native American tribal foundation; assessing trends and changes inextreme weather; and identifying critical thresholds for action as related to stormwater systems.

Floyd|Snider Employees Participate in Climate Change Research